MONEY CLEARANCE AND SETTLEMENT 407
form of unsecured “day loans” is greatly reduced. In addition,
 the stock market is not warped out of its normal economic
functions by an insufficiency of bank accommodation.
6. Such large economies in labor are effected that the Stock
Clearing Corporation can justly be considered one of the lead:
ing labor-saving devices in American finance. Under prevailing
 conditions in Wall Street, employees can be paid more
because fewer and more intellicent workers are required.

THOUSANDS
OF CHECKS
4500 —

OBVIATION OF Cli=Ci.=%


100

- CHEZIKS
IMRVIATFD

500

2500

1500

ME.
ZHECK!

™

80

80

7]

500 — J 60
1921 1922 1923 1924 1925 1926 1927 1928 1929
Figure 50. Annual Obviation of Number of Checks by the Stock Clearing
Corporation

7. The above economies effected by the Stock Clearing Corporation,
 plus the keen and constant supervision it gives to the
whole settlement process, have the effect of greatly speeding
up all these operations. Any settlement system can in a sense
move only as rapidly as its slowest member, but if there is
some one to detect and stimulate its slowest units, all the more
efficient units are safeguarded thereby from delay.
8. As one conspicuous item, the huge obviation of the number
 of separate checks which need to be drawn (Figure 50)*°

9 See Appendix XIVd,.